Tax Rates 2015

On Wednesday, 25 February 2015, South Africans were told to prepare for higher taxes. The government’s annual budget indicated a 1% increase in personal income tax.

Tax Rates for 2015 is as follows:

Personal Tax

Taxable Income

Tax Payable

R0 – R181 900

18% of each R1 taxable income

R181 901 – R284 100

R32 742 + 26% of taxable income above R181 900

R284 101 – R393 200

R59 314 + 31% of taxable income above R284 100

R393 201 – R550 100

R93 135 + 36% of taxable income above R393 200

R550 101 – R701 300

R149 619 + 39& of taxable income above R550 100

R701 301 and Above

R208 587 + 41% of taxable income above R701 300

Income Tax

The amount an individual can earn before they are required to pay tax has been increased for the tax year that runs from 1 March 2015 to 29 February 2016.

Below age 65

Age 65 and over

Age 75 and over

R73 650

R114 800

R128 500

Tax rebate increases

Primary

Secondary

Tertiary

For all taxpayers

Aged 65 and over

Aged 75 and over

R13 257

R7 407

R2 466

Sin Tax

Excise duties on alcoholic beverages will increase between 4.8% and 8.5%. There are some reforms under consideration that will provide excise duty relief to wine-based spirits.

The increases in excise duties are as follows:

Alcohol:

Malt beer up by:

Fortified wine up by:

Ciders and alcoholic fruit beverages:

7c Per 340ml can

19c Per 750ml bottle

7c Per 330ml bottle

Unfortified wine up by:

Sparkling wine up by:

Spirits up by:

15c Per 750ml bottle

48c Per 750ml bottle

R3.77 per 750ml bottle

Tobacco

Cigarettes up by:

Cigarette tobacco up by:

Pipe tobacco up by:

Cigars up by:

82c Per packet of 20

91c Per 40g

26c Per 25g

R3.09 per 23g

Fuel levy

General fuel levy will increase by:

Road Accident Fund levy will increase by:

30.5 cents

50 cents

This will increase fuel prices by 80.5c.

Medical Schemes

The monthly medical scheme contributions tax credits will increase from 1 March 2015. The first two beneficiaries will be increased from R257 to R270 per month and each additional beneficiary will be increased from R172 to R181 per month. Medical tax credits which are related to medical scheme contributions, will be taken into account for both PAYE and provisional tax purposes.